Naledi’s R800 million Eskom debt relief application doomed for failure

Issued by Cllr Hendriëtte van Huyssteen – DA Caucus Leader: Naledi Local Municipality
06 Oct 2023 in Press Statements

Note to Broadcasters: Please find linked soundbites in English and Afrikaans by Cllr Hendriëtte van Huyssteen.

The DA in the Naledi Local Municipality is concerned with the ANC-majority Council’s resolution to apply to Eskom for debt relief. We believe that the municipality will not be able to comply with the very strict requirements to qualify for debt relief.

Naledi’s Eskom debts are currently recorded just short of R800 million. Over the last three months, the debt ballooned by R50,5 million to where it is today at R791,245,849.30. The municipality has failed to service payments to Eskom on its arrears and current accounts.

The municipality would have to ensure monthly payments to Eskom for a period of 36 months for debt to be written off, one of the stringent requirements to qualify for Eskom debt relief. Naledi has failed to pay Eskom for several years and it is unlikely that the municipality would stick to this arrangement.

Should Naledi fail to honour monthly payments, Eskom will immediately implement legal debt recovery proceedings, which could result in the suspension of bulk electricity supply like we saw in December 2019, leaving all residents in the dark for days.

The DA will not allow Eskom to punish residents in Naledi for the failures of the ANC-led municipality by suspending bulk electricity supply, a position supported by several court judgements. We are already in the High Court opposing this unlawful Eskom action in the Lichtenburg case.

Should Naledi break its debt relief agreement, it could also result in having the municipality’s NERSA licence revoked and municipal officials could face criminal charges for failure to ensure payments as per the agreement.

The DA questioned the Provincial Executive Representative, Mr Tshenolo Lefutswe, who is currently overseeing Naledi’s administration, during the Council meeting. They inquired about the Council and municipal administration’s ability to adhere to this payment plan as some ANC, EFF and FF Plus Councillors do not even pay their own municipal accounts, which are in arrears for periods exceeding 90 days, some totalling over R2 million.

Mr Lefutswe stated that he cannot confirm whether the administration and Council will adhere to such a repayment plan, as even his own directives to the administration have gone ignored. Even the ANC-led North West Provincial Government does not have confidence that Naledi would be able to adhere to the strict debt relief requirements.

We will write to the Municipal Manager, Modisenyane Thompson Segapo, and Mr Lefutswe urging them to immediately meet with Eskom to discuss the details of the repayment arrangement and bring it to Council to consider the viability of the payment terms.

The residents of Naledi have suffered enough under failed ANC governance. It is time for residents to take back their power by registering to vote DA in 2024 so that we can rescue South Africa and rebuild North West.